Crypto-backed mortgages are loans where borrowers use their cryptocurrency holdings as collateral for real estate. This enables them to secure financing without selling digital assets, allowing for potential appreciation in value. Types include purchase mortgages, cash-out refinancing, and bridge loans. Crypto mortgages offer benefits like quicker approval processes, liquidity without selling, and potential tax advantages. However, they also come with risks such as higher costs and volatility, plus regulatory uncertainties. The approval process is typically faster but involves higher interest rates. Important steps include finding a lender, applying with proof of ownership, and placing crypto in escrow as collateral. Borrowers must understand the loan terms to avoid liquidation risks if crypto values drop. Overall, crypto-backed mortgages provide a novel avenue for accessing real estate funds while retaining ownership of cryptocurrencies.

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